Market at 10 AMBenchmark indices erased most of the opening losses but still trading lower with Nifty around 17800.The Sensex was down 152.02 points or 0.25% at 59832.68, and the Nifty was down 42.30 points or 0.24% at 17815.00. About 1125 shares have advanced, 1520 shares declined, and 123 shares are unchanged.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
Rupee moving in a range of 74.70 -75.20. The US data was lower than expectation yesterday with GDP coming at 2% against expectation of 2.7%.
Oil majors were the big buyers of dollar yesterday along with FII whose outflow was one of the highest in recent times at Rs 3800 crores.
Rupee would open around 74.80 and remain in 74.60/75.00 range as NYKKA and Policy Bazaar inflows hit the market.
Exporters to sell only near to 75.00 and importers to buy near 74.70 for their near term exposures
Nifty Metal index added 1 percent supported by the NMDC, Tata Steel, Adani Enterprises
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
With the Nifty moving below the 20 Day Moving Average, the market has turned distinctly weak. The major drag on the market now is the sustained FII selling which touched Rs 3818 crore yesterday. This comes after foreign brokerages like Morgan Stanley, Nomura and UBS downgrading India on excessive valuations.
When smart money selling turns aggressive, retail exuberance would be overwhelmed. This is happening now. Investors need not rush in to buy now; the ‘buy on dips’ strategy, which worked well since April last year, may not work when FIIs are selling massively. So investors may wait and watch the trend before taking decisions. However, switching from expensive stocks in the broader market to high quality large-cap growth stocks may be a good idea.
Government asking IRCTC to share 50% convenience fee with the Railway Ministry is yet another instance which should warn investors of undue optimism while investing in PSU stocks. Enhancing shareholder return is not the objective of PSUs. So investors have to be careful while chasing PSU stocks, even if they are cheap.
US yields climb as weak GDP largely ignored
US Treasury yields advanced on Thursday, as investors shrugged off weaker-than-expected US economic growth data and focused instead on the inflation components of the report, as well as a solid jobless claims number.
US yield curves flattened again amid heightened expectation of a rate hike by the Federal Reserve next year, with the gap between 5-year and 30-year yields narrowing to 73.4 basis points, its tightest since March 2020.
Japan’s factories extend output declines in September
Japan’s factory output shrank for the third straight month in September as production in the auto sector was hit by a global supply shortage, throwing the recovery in the world’s third-largest economy into doubt.
Factory production slumped 5.4% in September from the previous month, official data showed on Friday, hurt by falling output of cars as well as general-purpose machinery.
BPCL, Adani Power, Dr Reddy’s Labs, Shree Cement, UPL, Vedanta, Adani Transmission, Apollo Tyres, Bandhan Bank, Barbeque-Nation Hospitality, Bharat Electronics, Cadila Healthcare, CARE Ratings, Castrol India, Chemplast Sanmar, Cholamandalam Investment and Finance Company, LT Foods, Dalmia Bharat Sugar and Industries, Dixon Technologies (India), Elecon Engineering, Emami, Embassy Office Parks REIT, Equitas Small Finance Bank, Escorts, Exide Industries, GAIL (India), Glaxosmithkline Pharmaceuticals, Indigo Paints, JK Lakshmi Cement, JSW Energy, Kolte-Patil Developers, Neuland Laboratories, Oberoi Realty, REC, RPG Life Sciences, SAIL, Satin Creditcare Network, Sumitomo Chemical India, TTK Healthcare, Varun Beverages, VIP Industries, and Voltas.
Gainers and losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened on weaker note on October 29 with Nifty below 17,800 amid mixed global cues.
At 09:16 IST, the Sensex was down 465.06 points or 0.78% at 59,519.64, and the Nifty was down 132 points or 0.74% at 17,725.30. About 677 shares have advanced, 1051 shares declined, and 82 shares are unchanged.
NTPC, ONGC, Sun Pharma, IndusInd Bank and Power Grid Corp were among major losers on the Nifty.
Indian markets are likely to open on a flat note on the back of mixed global cues as traders weighed inflation risks from supply-chain snarls and costlier raw materials, in turn, dimming the economic outlook.
US markets ended higher amid release of macroeconomic data and earnings data from big-name corporates.
Market at pre-open: Benchmark indices are trading flat in the pre-opening session amid mixed global cues.
At 09:02 IST, the Sensex was up 55.57 points or 0.09% at 60040.27, and the Nifty was down 64.90 points or 0.36% at 17792.40.
US jobless claims drop to coronavirus pandemic low at 281,000
The number of Americans applying for unemployment benefits fell to a pandemic low last week, another sign that the job market and economy continue to recover from last year’s coronavirus recession.
Jobless claims dropped by 10,000 to 281,000, lowest since mid-March 2020, the Labor Department said Thursday. Since topping 900,000 in early January, weekly applications have steadily dropped, moving ever closer to prepandemic levels just above 200,000.